NetEase Cloud Music (9899) Q4 2025 earnings summary

Executive summary

• Achieved steady growth in user engagement and subscription-based memberships, with a focus on premium music experiences and content innovation.

• Enhanced profitability through disciplined cost management, improved operating leverage, and a shift toward core music business.

• Expanded content library with new partnerships, original music, and support for independent artists, strengthening platform differentiation.

Financial highlights

• Revenue decreased by 2.4% year-over-year to RMB7,759.5 million, mainly due to a decline in social entertainment services.

• Gross profit increased by 3.3% to RMB2,769.6 million, with gross margin rising from 33.7% to 35.7%.

• Operating profit rose 38.5% to RMB1,622.0 million, driven by lower promotion expenses and higher government grants.

• Net profit surged 75.4% to RMB2,745.8 million, aided by a deferred income tax credit of RMB746.7 million.

• Adjusted net profit (non-IFRS) grew 68.2% to RMB2,860.0 million.

• Earnings per share: Basic RMB13.02, Diluted RMB12.87.

Outlook and guidance

• Plans to further diversify content, deepen copyright partnerships, and enhance independent artist incubation.

• Focus on optimizing user experience, expanding community features, and improving profitability through cost control.